Linde proves resistant to crisis

Performance indicators for the 2009 financial year demonstrate that The Linde Group has been comparatively successful at cushioning the impact of the global financial and economic crisis.

Group sales were €11.211bn, 11.5% down on the previous year figure of €12.663bn. Group operating profit, however, declined at a slower rate.

Linde achieved Group operating profit of €2.385bn, only 6.7% below the previous year figure. The Group operating margin rose as a result to 21.3% (2008: 20.2%).

Earnings before tax (EBT) were €838m, €168m below the previous year figure of €1.006bn. After adjusting for restructuring costs of €83m and the profit on disposal of businesses of €59m achieved in 2008, the decline was only €26m or 2.7%.

Earnings after tax were €653m (2008: €776m). The amount attributable to Linde AG shareholders was €591m (2008: €717m); this corresponds to earnings per share of €3.51 (2008: €4.27).

After adjusting for the effects of the purchase price allocation in the course of the BOC acquisition and the profits on disposal achieved in 2008, earnings per share stood at €4.58 (2008: €5.46). The restructuring costs recognised in 2009 have not been adjusted for here.

Operating cash flow continued the positive trends seen in the previous quarters. It increased significantly by 14.2% to €2.142bn (2008: €1.876bn).

At the same time, Linde succeeded in reducing its net financial debt by over €300 m to €6.119 bn (2008: €6.423 bn).

In the gases division, sales in the 2009 financial year fell by 6.1% to €8.932bn. On a comparable basis, i.e. after adjusting for exchange rate effects, changes in the price of natural gas and changes to group structure, the decline in sales was 5.1%.

The division achieved an operating profit of €2.378bn, only 1.6% below the previous year figure of €2.417bn.

As a result, the operating margin in the gases division improved significantly by 120 basis points to 26.6% (2008: 25.4%).

No comments yet

Have your say

Only registered users can comment on this article.

About gasworld

Month on month the gasworld website continues to be the primary portal for information, on a global scale, about our industry - be it through the provision of news and features, or information in the expansive company directory section. Launched in 2004, it is the only independent online news provider and information portal for the global industrial gas community and the larger end-user markets. The website also now incorporates news for gasworld US and Specialty Gas Report.